Marshall County Journal, SD
01-10-07
Livestock Extension News
By: Tyler Melroe, Extension Educator
The year 2005 was an exciting one for cow-calf producers. No matter where you
were and what you were selling, it brought a premium. It is easy to forget about
producing quality calves and managing them properly when even under
managed cattle sold so well.
However, as we progressed through the fall of 2006 the saying "All good things
must come to an end" could be heard.
My question for you is, DO THEY? Do we have to be satisfied with commodity
prices for our feeder calves this year? The answer is simple, easy to spell, and
can be understood in several languages: NO.
Cattle-FAX has published figures that diagram an approach to receiving
maximum value for feeder cattle. With dips in feeder calf prices and no short term
relief for corn prices in sight, make 2007 the year your cattle are noticed on sale
day.
This diagram builds off of a base built on under managed and average cattle.
These cattle can be discounted for not being dehorned, uncastrated males, and
dirty/unhealthy appearing cattle. Even if these steps have been taken, buyers
may still evaluate your cattle as minimally managed, average cattle that someday
may move into the discounted category. Garnering a premium will require
increased management the market will recognize.
Cattle-FAX has identified performance history (feedlot/carcass), vaccinations,
weaning/preconditioning, verifying age and source, and producing for premium
programs and natural markets as the stairway to maximum value.
Attaining maximum value requires that you climb each step to the natural
markets. However, each step you take is added value. Iowa State university
has identified a $6.15/cwt increase in value for feeder cattle that are vaccinated,
weaned for at least 30 days, and have a third party verification to prove it (could
be pharmaceutical company's program).
We have seen resurgence in the popularity of "natural" programs in the beef
industry. Most typically in the beef industry "natural" or "drug-free" will refer to
cattle that have never received an implant, antibiotics, or ionophores. Premiums
on these cattle have varied from very significant ($20/cwt on market cattle last
spring) to close to zero.
It is reasonable as a producer to ask the question: If I am going to give up
improvements in efficiency (implant, antibiotics, etc.) how am I going to ensure
that I receive the necessary premium to be compensated? Realize this: 1)
Receiving value is not just about what you don't do (i.e. there are both
progressive and digressive producers not utilizing implants, antibiotic, etc.) and
2) Receiving value is about what you do (documentation, verification,
precondition, etc.). Well managed "natural" cattle will have added value.
Yes, this requires a tremendous amount of effort and can be more expensive
(cost of gain is higher for non-implanted cattle), but moving beyond commodity
prices will require we manage our cattle to add value. Certifying vaccination and
weaning dates, along with source and age verification will be critical to your
success. Properly managed "natural" cattle have the opportunity to move your
cattle into the premium category.
Learn About Raising
"Natural"Cattle
Representatives from Cattle-FAX, USDA, Cargill Animal Nutrition, Creekstone
Farms, and South Dakota State University will gather to discuss the growing
"natural" sector of the beef industry in Brookings on January 17th. This program
will be one of a kind for providing several perspectives on the "natural" business
from pasture to plate. If you are interested in attending contact the Marshall (4485171), Kingsbury (854-3851), or Miner (772-4661) County Extension Office.